NMIRF hires private accounting firm

The Northern Mariana Islands Retirement Fund has hired the services of an accounting consultant to examine the $5 million debt of the Government Health & Life Insurance to different off-island health providers.

According to NMIRF Administrator Juan S. Torres, the board has approved to engage the services of David Burger, a certified public accountant, for a brief period to make a report on how much exactly the health insurance must pay to the private health providers by reviewing the accounts since January 1996.

In addition, the Fund also wants to find out the real amount the health insurance owes to the Commonwealth Health Center. GHLI’s debt to the hospital is estimated at $10 million but the Fund believes that the amount should be lower because the health insurance will only cover the expenses based on the insurance policy of its members.

Mr. Torres has expressed concern on the financial reports published by the Fund because these do not reflect the real situation. As a result, legislators do not believe that the Fund needs help with the government health insurance which is saddled with a huge debt.

Earlier, Mr. Torres has sought the assistance of the Office of the Public Auditor to help improve the accounting system of the Fund.

Currently, off-island health providers have been turning away members of the government health insurance who are seeking medical treatment unless they pay in cash.

The legal counsel of the Fund has warned the Board of Trustees that they can be sued if anything happens to any of its member who does not get immediate medical attention. NMIRF has asked the government health insurance members to pay for their medical expenses first to be reimbursed later by the Fund.

The Fund has asked the Legislature’s assistance for funding to pay off the government health insurance’s debt but nothing has been done to resolve the problem.

NMIRF Board has approved the hiring of Hawaii Management Alliance Association to provide review utilization services and eventually handle the functions of the government health insurance.

Board Chair Vicente C. Camacho has expressed concern on the failure of the government to help settle the problem with health providers because of the negative effect on the CNMI’s reputation.

The board would need close to $800,000 to establish a revolving account, a trust fund and payment of set up fee for the hiring of HMAA.

According to Mr. Camacho, HMAA will be able to negotiate for a 20 to 50 percent discount to some 30-member hospitals and clinics. The company has in-house doctors who will analyze the billings and a pharmaceutical benefits manager who monitors the prices of medicine. (Lindablue F. Romero)